System and method for insurance vendor self-audits

ABSTRACT

A computerized system and computer-implemented method for enabling insurance vendor self-audits that receives referral data from a vendor, samples the referrals, assigns audit questions to each referral within the sample of referrals, presents the audit questions to the vendor and receives answers from the vendor, scores the answers based on rules, and reports the audit scores.

FIELD OF THE INVENTION

The present invention relates to insurance claims handling and, moreparticularly, to auditing third party service vendor referrals.

BACKGROUND OF THE INVENTION

Insurance is a business of providing specified benefits to insuredparties in return for the payment of premiums. In the event of anaccident or loss, a policyholder or a third-party claimant can obtainpayments for insured services, as provided in an insurance policy, byfiling an insurance claim with the issuing insurance company. Under manyinsurance policies, including for example workers' compensation andautomotive collision policies, it is common for an authorized thirdparty services vendor to provide services directly to the insured orclaimant and receive payments on behalf of the insured party from theinsurance company.

As the insurance business model relies upon an appropriate ratio ofpremiums to claims payments, it is important to ensure that onlyjustifiable claims are paid. Accordingly, it is common for claimshandling processes to include audits for validating that each billedservice or referral, under each claim, has been provided by anauthorized vendor according to relevant standards.

In fields of insurance such as worker's compensation, health care, orproperty and casualty loss, referrals audits require specific expertiserelevant to the nature of each referral. Such expertise often isdistinct from the actuarial and financial skills integral to insurers'businesses. Thus, particularly with reference to workers' compensationpolicies, most insurers prefer to rely upon the third party vendors tovalidate each referral submitted under a given claim. For this purpose,most insurers impose referral self-audit requirements on third partyvendors as a condition of vendor acceptance. Additionally, most insurershave employees with relevant technical expertise, who periodicallyvalidate the results of vendor self-audits.

Self-audits can be burdensome in time and expense. Particular burdensinclude ensuring true random selection by the insurer of referrals to beaudited, so that an entire population of referrals need not be auditedby the vendor; and ensuring timely completion of the audit by thevendor. Whether the burden and expense initially are borne by theinsurer or by the third party vendor, eventually the costs must bepassed to consumers. Insurers, as any other service provider, wish tooffer lower prices so as to attract more consumers. Thus, computerizedmethods and systems for expediting and automating vendor self-auditinghave become highly desirable in the art of insured service referralsauditing.

SUMMARY OF THE INVENTION

According to the present invention, a computerized system automates andexpedites vendor referrals information submissions, referrals review,and vendor referrals self-audits. The computerized system implements amethod of uploading referrals information, sampling the uploadedreferrals information, self-auditing the sample of referrals, andreporting the results of the self-audit.

In other embodiments of the present invention, the computerized systemfurther implements methods of setting audit standards, monitoring trendsin self-audit results, and training vendors to improve referral quality.

In some embodiments of the present invention, the computerized systemincludes a web-implemented user interface. The web-implemented interfacemay include a vendor instance, a supervisor instance, a user instance,and an administrator instance.

In some embodiments of the present invention, a module for vendorreferrals submission may implement a method for uploading referrals viaa vendor instance of a computer-implemented interface. Thecomputer-implemented interface may be a web interface. The web interfacemay be provided via wired or wireless media. The computer-implementedinterface may be implemented on a desktop computer, on a portablecomputer, on a handheld device, or by equivalent interactive meansincluding TTY or automated voice response.

In some embodiments of the present invention, a module for samplinguploaded referrals may implement random sampling algorithms. Similarly,a self-auditing module may provide a random selection of audit topicsand of specific audit questions, for minimizing time burdens on vendors.Alternatively or additionally, a self-auditing module may provide atargeted selection of audit topics and/or questions, based on dataprovided from an audit scoring module.

In some embodiments of the present invention, an audit reporting modulemay provide a report card via a vendor instance of a web interface. Anaudit reporting module may also include an audit trending process, fordetermining how vendor performance varies over time and for identifyingspecific recurring deficiencies or problem areas.

In some embodiments of the present invention, a vendor training methodmay include modification and display of a referrals administrationchecklist, via a vendor instance of a computer-implemented interface,during a referrals uploading process. A referrals administrationchecklist may be produced according to a vendor audit report card. Forexample, a referrals administration checklist may be directly producedas the result of an audit trending process.

These and other objects, features and advantages of the presentinvention will become apparent in light of the detailed description ofthe best mode embodiment thereof, as illustrated in the accompanyingdrawings.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 shows a schematic view of a computerized system for implementinga computerized method for improved insurance claims handling, accordingto an embodiment of the present invention.

FIG. 2 shows a vendor module and interface implemented by thecomputerized system shown in FIG. 1.

FIG. 3 shows a managerial module and interface implemented by thecomputerized system shown in FIG. 1.

FIG. 4 shows a flowchart of a referrals uploading process implemented bythe computerized system and interface shown in FIGS. 1 and 2.

FIG. 5 shows a flowchart of a viewing and editing process implemented bythe computerized system and interface shown in FIGS. 1 and 2.

FIG. 6 shows a flowchart of a sampling process implemented by thecomputerized system shown in FIGS. 1 and 3.

FIG. 7 shows a flowchart of an auditing module 700 implemented by thecomputerized system and interface shown in FIGS. 1 and 2.

FIG. 8 shows a flowchart of an audit scoring process implemented by thecomputerized system shown in FIG. 1.

FIG. 9 shows a flowchart of a reporting process implemented by thecomputerized system and interface shown in FIGS. 1 through 3.

FIG. 10 shows a flowchart of a workflow routing process implemented bythe computerized system and interface shown in FIGS. 1 and 3.

FIG. 11 shows a flowchart of an audit revision process implemented bythe computerized system and interface shown in FIGS. 1 and 3.

FIG. 12 shows a central server architecture implementation of thecomputerized system and method shown in FIGS. 1-9.

FIG. 13 shows a distributed network architecture implementation of thecomputerized system and method shown in FIGS. 1-9.

DESCRIPTION OF PREFERRED EMBODIMENTS

Referring to FIG. 1, the present invention relates to a computerizedsystem 100, which assists vendors of insured services in accomplishingtimely self-audits of vendor referrals. In use, a vendor, or anotherperson acting on behalf of the vendor, may access the computerizedsystem 100 via a secure web-implemented interface 118. As furtherdiscussed below with reference to FIGS. 2 and 4, referrals 106 can beuploaded to an insurer's database 112, via the web interface, on amonthly or quarterly basis. The computerized system 100 helps the vendorensure that each uploaded referral 106 includes all requiredinformation. Referral 106 can include all the data required by aninsurance company from the vendor related to the services provided tothe insured or the claimant. Referral 106 will be associated with aparticular claim file when stored in the system. While uploading thereferrals 106, the vendor can view and modify each referral 106, asfurther discussed below with reference to FIG. 5. Preferably, anyreferral with missing information will be highlighted in yellow untilthe record is updated.

Once all of the uploaded referrals meet all business/technicalrequirements the vendor can then click on a Submit Data for Audit button(shown in FIG. 4), which will save the referrals to the database andwill end an automated email to a Vendor Manager, notifying the vendormanager that the data is ready for review and a random audit sample canbe run.

The vendor manager then can use the computerized system 100 to generatea random sample of referrals uploaded by the vendor, as furtherdiscussed below with reference to FIG. 6. The computerized system 100will generate an automated email to the vendor when the random sample isready for auditing.

The vendor can now begin their self-audit using the auditing module 700,as further discussed below with reference to FIG. 7. The referralsincluded in the random sample generated by the sampling module 600 canbe viewed by clicking on one of four category links listed in the leftnavigation: Case Management>Hourly Referrals and Task Referrals orVocational Rehabilitation>Hourly Referrals and Task Referrals. Thevendor can answer the audit questions either partially or fully, and cansave their responses by clicking a Save button. Audit questions thathave not been fully answered will continue to appear under CaseManagement>Review Hourly Referrals and Review Task Referrals orVocational Rehabilitation>Review Hourly Referrals and Review TaskReferrals.

The vendor can submit the audit to the vendor manager by clicking aSubmit to Vendor Manager button (shown in FIG. 7) when satisfied thatall questions on an individual record have been fully answered. Clickingthe Submit to Manager button generates a scorecard based on the vendor'sanswers to the audit questions, and further incorporating results of abilling audit separately conducted by the vendor manager, as furtherdiscussed below with reference to FIG. 8. The Scorecard is viewable byboth the Vendor and the Vendor Manager. The Submit to Vendor Manageralso sends an email notification to the Vendor Manager, requesting aschedule for formal Scorecard review.

Scorecard review with all parties is completed via teleconference,real-time chat, e-mail, or in person. Finally, the scorecard ismodified, approved, and archived via the computerized system 100, asfurther discussed below with reference to FIG. 9. Scorecard review mayproduce workflow for the vendor and/or the vendor manager, as furtherdiscussed below with reference to FIG. 10. Through scorecard review, orfor other reasons, the vendor manager may decide to change one or moreaudit questions, as further discussed below with reference to FIG. 11.Thus, the computerized system 100 provides a complete and substantiallyautomated tool for accomplishing previously burdensome administrativetasks.

When considering the computerized systems and methods disclosed herein,it should be appreciated that the logical operations of variousembodiments of the present invention for improved handling of vendorreferrals and for enhanced vendor self-audits may be implemented (1) asa sequence of computer implemented acts or program modules running on acomputing system and/or (2) as interconnected machine logic circuits orcircuit modules within the computing system. The implementation is amatter of choice dependent on the performance requirements of thecomputing system implementing the invention. Accordingly, the logicaloperations illustrated herein, and making up the embodiments of thepresent invention described herein are referred to variously asoperations, structural devices, acts, actions or modules. It will berecognized by one skilled in the art that these operations, structuraldevices, acts and modules may be implemented in software, in firmware,in special purpose digital logic, and any combination thereof withoutdeviating from the spirit and scope of the present invention as recitedwithin the referrals attached hereto.

Referring to FIG. 1, a computerized system 100 for improved vendorreferrals process auditing includes a database module 102 and aninterface module 104. The database module 102 is configured to store andretrieve a plurality of vendor referrals 106, vendor audits 108, andvendor status records 110 within one or more known data structures suchas, for example, an SQL database 112. Each vendor status record 110 mayinclude one or more workflow schedules 936, as further discussed belowwith reference to FIG. 9. It will be appreciated that alternative dataarchitectures and protocols could also be used for the database withappropriate modifications to the database module 102. Additionally,announcements 114 and user credentials 116 may be stored within thedatabase 112 or in a separate database also maintained by the databasemodule 102. The interface module 104 is configured to provide agraphical user interface (GUI) 118, at any of a plurality of clientmachines 120. Through the GUI 118 presented by the interface module 104,any of a plurality of authorized users may provide data or queries tothe database module 102, which accesses the SQL database 112.

Still referring to FIG. 1, the interface module 104 includes a vendormodule 200 (shown in FIG. 2) and a managerial module 300 (shown in FIG.3). Each module provides specified groups of authorized users withaccess to selected processes for handling and auditing vendor referralssubmittals. At a step 126 when the interface module 104 is firstaccessed via the GUI 118, the interface module 104 displays a loginscreen 128. At a step 130, the interface module 104 receives logincredentials, and at a step 132, the interface module 104 determinesbased on the login credentials whether to activate the vendor module 200or the managerial module 300, or whether to loop to step 126.

Referring to FIG. 2, when activated by the interface module 100, thevendor module 200 performs a step 201 of modifying the GUI 118 todisplay a vendor interface 202, which any member from an authorizedgroup of service vendors may access in a vendor role. Preferably, eachmember from the authorized group of vendors is separately credentialedwith their own login and password. The vendor interface 202 provided bythe vendor module 200 includes a vendor status section 203, anannouncements section 204, a contacts section 205, an audit section 206,and a links bar 207.

The vendor status section 203 displays, to each vendor user, the duedate and progress associated with that vendor's next scheduled referralsdata upload, according to the corresponding vendor status record 110maintained in the SQL database 112.

The announcements section 204 displays a linked list of announcements114 applicable to the particular vendor user. By clicking any linkwithin the list of announcements 114, a vendor user may view a copy of avendor manager announcement 114 applicable to the vendor.

The contacts section 205 displays a linked list of vendor managerpersonnel whom the vendor user is authorized to contact regardingreferrals information, the auditing module 700, the vendor interface, orrelated issues. By clicking a link within the contacts section 205, thevendor user may initiate communication with a vendor manager user,either through the vendor interface 202 or through a separate device orinterface.

The audit section 206 displays a due date and progress associated withthe vendor's next scheduled self-audit, based on the vendor statusrecord 110.

The vendor links bar 207 includes an “Upload File” link 208, by which avendor can access a referrals uploading module 400 (shown in FIG. 4) forsubmitting one or more referrals to the database module 102; a “PrintRandom Sample” link 210, by which a vendor can activate a samplingmodule 600 (shown in FIG. 6) to view a sample 606 of referralspreviously selected by a manager-activated instance of the samplingmodule 600; a plurality of “Referrals” links and “Review Referrals”links 212, 214, . . . , 224, 226, each corresponding to one of aplurality of pre-determined types of referrals (e.g. links for hourly ortask-billed case management or vocational rehabilitation servicesreimbursement referrals, as shown in FIG. 2), each of the several linksproviding access to an auditing module 700 (shown in FIG. 7) throughwhich a vendor may answer a plurality of audit questions regarding asubset of referrals, within the sample 606, corresponding to theparticular audit link; and a “Scorecard” link 230, by which a vendor canaccess an audit reporting module 900 (shown in FIG. 9) for displayingresults of the auditing module 700.

Referring now to FIG. 3, when activated by the interface module 104, themanagerial module 300 performs a step 301 of modifying the GUI 118 todisplay a managerial interface 302, which any member from an authorizedgroup of insurer employees may access in one of three vendor managerroles according to the member's login credentials. The vendor managerroles include supervisor, administrator, and user roles. The managerialinterface 302 provided by the managerial module 300 includes a managerstatus section 303, an announcements management section 304, a contactsmanagement section 306, an audit management section 308, and a managerlinks bar 310. The managerial interface 302 affords to each vendormanager user appropriate access to functions affecting each vendorassociated with that vendor manager user.

The manager status section 303 displays a list of all vendors associatedwith the vendor manager viewing the managerial interface 302, along withthe due date and progress associated with each vendor's next scheduledreferrals information upload, based on the plurality of vendor statusrecords 110 associated with the vendor manager user accessing themanagerial interface 302. Clicking on a vendor link within the managerstatus section 303 causes the managerial module 300 to display thestatus of the linked vendor's most recent audit 736 in the auditmanagement section 308.

The announcements management section 304 displays a list of allannouncements 114 issued by the vendor manager user or affecting vendorsassociated with the vendor manager user, along with the read/unreadstatus of each announcement 114. The announcements management section304 also includes a link 312 for creating a new announcement directed tovendor manager users and/or to one or more of the vendors associatedwith the vendor manager user.

The contacts management section 306 displays a linked list of vendorsassociated with the vendor manager user accessing the managerialinterface 302, along with contact information for each vendor in thelist. By clicking a link within the contacts management section 306, thevendor manager user may initiate communication with a vendor user,either through the managerial interface 302 or through a separate deviceor interface.

The manager links bar 310 includes a “Vendors” link 314, through whichthe vendor manager user may access a vendor management process 316 foradding, deleting, or editing vendors, and a “Run Random Sample” link 318for activating a managerial instance of the sampling module 600 (shownin FIG. 6) to generate a new random sample from submitted referralsassociated with a presently-selected vendor, or to display apreviously-generated random sample associated with a presently-selectedvendor. The links bar 310 also includes a “Reports” link 320, throughwhich a vendor manager user may activate the audit reporting module 900,which modifies the managerial interface 302 to display managerialcontrols 910 for viewing audit results associated with a selectedvendor, as further discussed below with reference to FIG. 9. The linksbar 310 also includes a plurality of audit revision links 324, 326, 328,330, through which the vendor manager user may access an audit revisionmodule 1100 (shown in FIG. 10) for adding, deleting, or modifying auditquestions associated with each type of referral; and a useradministration link 332 for accessing user administration process 334 toadd, delete, or modify vendor or vendor manager user data.

While all of the links in the managerial interface 302 are available tovendor manager (insurer) employees acting in a supervisor role,employees acting in a manager role cannot access the user administrationlink 332. Employees acting in a user role are further limited toaccessing only the reports link 322 and the sampling link 318.

Referring to FIG. 4, when activated at a step 402, the referralsuploading module 400 checks whether an upload already is in process. Ifno file is being processed for upload, at a step 404 the referralsuploading module 400 displays a file window 406 within or over thevendor interface 202, or implements an equivalent conventional techniquefor choosing a file 408 to be uploaded. Once the vendor user has chosenthe file 408, then at a step 410 the uploading module 400 checks thefile 408 to verify that the file has an appropriate format for handlingby the database module 102.

If the file 408 does not have an appropriate format, then the uploadingprocess loops to step 404. If the selected file 408 does have anappropriate format, then at a step 414, the uploading module 400 alsoverifies that each referral 106 within the file 408 includes allrequired information for handling by other processes.

At a step 418, the uploading module 400 sets a flag 420 on each referral106 that does not meet informational requirements. The uploading module400 then activates a viewing module 500 for displaying and editing theuploaded referrals 106 via the vendor interface 202, as furtherdiscussed below with reference to FIG. 5. On return from the viewingmodule 500, the uploading module 400 repeats steps 410 through 418 toclear flags 420 from referrals 106 that newly meet informationalrequirements. If any flags remain, then the uploading module 400re-activates the viewing module 500. When all flags 420 have beencleared, the uploading module 400 proceeds to a step 422 of displayingthe cleared referrals 106 along with a “Submit Data for Audit” button424. Clicking on the “Submit Data for Audit” button 424 causes theuploading module 400 to perform a step 426 of passing all of thedisplayed referrals 106 to the database module 102, and a step 428 ofsending an “audit ready” notification, e-mail, or announcement 430 to avendor manager user associated with the vendor user.

Referring to FIG. 5, when activated at a step 502, the viewing module500 modifies the vendor interface 202 to display selected informationfrom each referral 106 passed by the uploading module 400, whilehighlighting each referral 106 that has a flag 420 previously set by theuploading module 400. Additionally, at step 502 the viewing module 500displays with each referral 106 an edit link 504. When a click isreceived on a highlighted referral 106, then the viewing module 500displays a pop-up window explaining the relevant flag 420.

Still referring to FIG. 5, at a step 506, in response to a clickreceived on one of the edit links 504, the viewing module 500 displaysdata entry fields 508 for modifying the referral 106 corresponding tothe edit link 504. At step 506, the viewing module 500 also displays a“Save” button 510 for modifying the referral 106 to match the dataentered in the fields 508 and for passing the modified referral 106 tothe database module 102; and a “Cancel” button 512.

The viewing module 500 can be accessed at any time via the vendorinterface 202 for viewing and editing the most recently uploadedreferrals 106, at least until all of the flags 420 have been cleared.

Referring to FIG. 6, and as discussed above with reference to FIGS. 2and 3, the referrals sampling module 600 can be accessed via the vendorinterface 202 or via the managerial interface 302. When accessed via themanagerial interface 302, at a step 602 the referrals sampling module600 displays controls 604 for querying the database module 102 to obtaina sample 606 of referrals 106 matching a vendor and a time period. At astep 608, in response to actuation of the controls 604, the samplingmodule 600 queries the database module 102. If a sample 606 matching thevendor and time period already exists, then at a step 610 the samplingmodule 600 displays the sample 606 via the managerial interface 302.Each selected referral (e.g., the services provided by the vendor forthe insured or covered person or entity) is related to a claim file forthe insured. However, if no sample yet exists corresponding to thevendor and time period, then at a step 612 the referrals sampling module600 takes in random order no less than five (5) referrals up to tenpercent (10%) of the referrals 106, but no more than twenty five (25)referrals total, to produce the random sample 606. The sampling modulemay also increase the likelihood of certain referrals being selectedbased on the data in the referral. For example, a certain type ofservice may be more likely to be problematic based on past history orthe nature of the service. In this case, the sample would still berandom but certain outcomes would be more likely resulting in a moreeffective audit to uncover issues to be addressed.

At a step 614, the sampling module 600 matches suitable audit questions618 to each referral 106 in the sample 606, based on the type of insuredservice associated with each referral. The vendor manager maypredetermine which audit questions 618 correspond to each type ofreferral, via the audit revision module 1100, as further discussed belowwith reference to FIG. 11. Optionally, the sampling module 600 mayrandomly select audit questions 618 from a larger set of questionspredetermined by the vendor manager, or may consult a workflow withinthe vendor status record 110 to select specific audit questions 618based on previous vendor scorecards 806, as further discussed below withreference to FIGS. 8 and 10.

At a step 620, the sampling module 600 stores the random sample 606,including referrals 106 and questions 618, back to the database 112 viathe database module 102. The sampling module 600 then performs step 610of displaying the random sample 606, along with a “Submit Audit toVendor” button 624. At a step 626, in response to a click received viathe “Submit Audit to Vendor” button 622, the sampling module 600 sendsan “audit ready” e-mail 628 to the vendor whose referrals 106 are in thesample 606. Optionally, the “audit ready” e-mail can include a link forautomatically accessing the sample 606 via the “Print Sample” link ofthe vendor interface 202. Alternatively, an “audit ready” notificationcan be provided via an announcement 114 displayed in the vendorinterface 202.

When accessed via the vendor interface 202, the sampling module 600performs step 602 of displaying controls 604. However, the control forselecting a vendor displays only the vendor viewing the vendor interface202. Additionally, when accessed via the vendor interface 202, if nosample yet exists corresponding to the time period selected by thevendor viewing the vendor interface 202, then the sampling module 600does not obtain a random sample based on the vendor's instructions, butinstead displays a blank screen, optionally including an error message.If a sample 606 already has been generated via a managerial instance ofthe sampling module 600, then the sampling module 600 displays thatsample via the vendor interface 202.

Referring to FIG. 7, the auditing module 700 is accessible via any ofthe plurality of audit links 212, . . . , 226 included in the links bar207 of the vendor interface 202, as also shown in FIG. 2. Whenactivated, the auditing module 700 performs a step 702 of retrievingfrom the database module 102 the most recent random sample 606 generatedfor the vendor by a managerial instance of the sampling module 600(shown in FIG. 6). However, if an audit already has been completed forthe most recent random sample, then the auditing module 700 merelydisplays the vendor interface 202.

If an audit has not yet been completed for the most recent random sample606, then at a step 704, the auditing module 700 identifies a subset 706of the random sample 606, wherein each referral in the subset 706 has aclaim type and an audit status matching the activating audit link 212, .. . , or 226. For example, referring also to FIG. 2, a subset ofreferrals retrieved via “Referrals” link 216 would contain only hourlycase management service referrals for which no audit questions 618 hadyet been answered, while a subset of referrals retrieved via “ReviewReferrals” link 224 would contain only task-billed case managementservice referrals for which at least some of the matching auditquestions 618 had been answered.

At a step 708, the auditing module 700 displays the subset 706 alongwith a pull-down menu 710 for selecting a referral 716 from the subset706. Activating the referral-selection pull-down menu 710 causes theauditing module 700 to perform a step 718 of displaying the selectedreferral 716, along with the audit questions 618 assigned to theselected referral 716 by the sampling module 600. The sampling module600 assigns appropriate questions to each referral within the sample606, as further discussed below with reference to FIG. 6.

Still referring to FIG. 7, at step 718 the auditing module 700 alsodisplays in association with each of the audit questions 618 a pull-downmenu 720 by which the vendor may select one of a pre-determined set ofbrief answers 722 to each question 618 regarding the chosen referral 716(e.g. “Yes”, “No”, “N/A”). At a further step 724, when the vendorselects any of a pre-determined subset of the brief answers 720 (e.g.“No”, “N/A”), the auditing module 700 further displays a text box 726for receiving additional information from the vendor.

At step 718, the auditing module 700 also displays a “Save” control 728.When a vendor user actuates the “Save” control 728, then at a step 730the auditing module 700 saves to the database 112, through the databasemodule 102, an audit record 736 reflecting the then-present state of theaudit questions 618, the brief answers 722, and any additionalinformation entered into text boxes 726. Additionally, if the auditingmodule 700 was accessed via one of the “Review Referrals” links 214,218, 222, 226, then at step 718 the auditing module 700 also displays a“Submit to Vendor Manager” control 732. When a vendor user actuates the“Submit to Vendor Manager” control 732, at a step 734 the auditingmodule 700 compiles the referrals 716, audit questions and brief answers618, 722 into the audit record 736, marks the audit record 736“complete”, and passes the audit record 736 into a scoring module 800,which produces a scorecard 806 as further discussed below with referenceto FIG. 8. On return from the scoring module 800, the auditing module700 displays a file window (not shown) for uploading a vendor billinginvoice file to be audited by the insurer. Once the vendor uploads abilling invoice file containing billing invoice data (to include .pdf or.tiff images of invoices), at a step 742 the auditing module 700 thengenerates an “audit complete” notification 744 to the vendor managerassociated with the vendor user. The notification 744 may be in the formof an e-mail or an announcement displayed via the managerial interface302. In response to the e-mail the vendor manager may access the billinginvoice data, as well as the scorecard 806 and the audit record 736, forfurther processing.

Referring to FIG. 8, at a step 802 the scoring module 800 receives anaudit record 736 and assesses at least the brief answers 722 accordingto pre-determined criteria (e.g. a look up table or a set of rules 804associated with the questions 618 and referral types within the audit736). Based on the rules 804, the scoring module 800 generates ascorecard 806 that indicates how the vendor has performed relative to aset of standards 808 predetermined by the insurer. For example, a Returnto Work Outcome score 806 a is determined, based on the percentage of“Yes” answers to the question “Did the client return to work?”,according to a Return to Work weighted formula 804 a. Additionally, thescoring module 800 can flag specific referrals 106 or questions 618 thathave answers 722 matching “problem” standards identified in the rules804.

Referring to FIG. 9, the reporting module 900 can be accessed via thevendor interface 202, or via the managerial interface 302. When accessedvia the vendor interface 202, at a step 902 the reporting module 900displays a selection tool 904 with controls for selecting a vendor and atime period; the vendor is preselected to match the user viewing thetool 904 via the vendor interface 202. On selection of a time period viathe tool 904, the reporting module 900 provides a read-only display ofthe scorecard 806 associated with that time period. The reporting module900 does not provide controls for editing the scorecard 806 whenactivated via the vendor interface 202 displayed by the interface module104.

When activated via the managerial interface 302, at a step 908 thereporting module 900 displays managerial controls 910 including a“Quality Scores” link 912 for displaying overall vendor quality scoresbased on the selected time period; an “Edit All Responses” link 914 fordisplaying and editing the brief answers 722 corresponding to anyparticular referral 106 selected from the selected audit 736, along witha text box 909 for entering a manual billing audit score; a “Return towork outcome” link 916 for displaying return-to-work outcome answers 722from the sample 606 underlying the audit 736; a “Self Audit Issues” link918 for displaying questions 618 with problematic answers 722 flagged bythe scoring module 800; a “Scorecard” link 920 for displaying thescorecard 806 generated based on the selected audit 736; a “TAT Report”link 922 for providing a read-only display of a TAT report 923; and a“View Self Audit Selections” link 924 for displaying the sample 606underlying the selected audit 736. The managerial controls 910 alsoinclude an enhanced selection tool 926, which permits selection of atime period and of a vendor for viewing via the other managerialcontrols.

For example, on selection of the “Edit All Responses” link 914, theenhanced selection tool 926 provides searchable access to all audits 736for which an “audit complete” notification 744 has been sent. Onselection of an audit 736 via the enhanced selection tool 926, thereporting module 900 provides an editable display 928 of the auditquestions and answers 716, 722 along with a “Save” button 930. Onreceiving a click on the “save” button 922, the reporting module 900re-initiates the scoring module 800.

On selection of the “Self Audit Issues” link 918, the reporting module900 displays a list of referrals 106 and questions 618 with problematicbrief answers 722 identified by the scoring module 800. The reportingmodule 900 can also display an “Accept” button (not shown) or similarinterface feature for the vendor manager user to acknowledge the listedissues. On receiving acknowledgement from the vendor manager user, thereporting module 900 initiates a routing module 1000.

Referring to FIG. 10, the routing module 1000, at a step 1002, evaluatesthe scorecards 806 within a vendor status record 110 to identifysignificant deficiencies. At a step 1004, the routing module 1000generates one or more workflows 1006 within the vendor status record 110based on the most recent scorecard 806 or on a sequence of scorecards806. For example, if a sequence of scorecards 806 indicates a recurringdeficiency with return-to-work outcomes for a specific type of injury,then the routing module 1000 generates a workflow 1006 a for alerting avocational rehab specialist on the insurer's staff to survey thevendor's employee training and certification processes. As anotherexample, in the event that it is determined, based on third partyinformation, that a vendor employee was not appropriately licensed fortasks performed, the routing module 1000 generates a workflow 1006 b forreminding the vendor that the vendor employee needs to renew orreinstate their required licensure. As a third example, in the eventthat a series of scorecards 806 indicate recurring deficiencies in casemanagement, the routing module 1000 generates a workflow 1006 c forperiodically reminding a vendor case manager to check on specificaspects of each pending referral.

Referring to FIG. 11, when activated at a step 1102, the audit revisionmodule 1100 modifies the managerial interface 302 to display a set ofaudit questions 618 corresponding to a referral type associated with thelink by which the audit revision module has been accessed. At step 1102the audit revision module 1100 also displays, along with each auditquestion 618, an edit link 1104 and a delete link 1106. Clicking on anyof the edit links 1104 causes the managerial interface 302 at a step1108 to provide data fields 1110 for modifying the question 618. At step1108 the audit revision module 1100 also provides controls for resettingthe data fields 1110, updating the question 618 based on the data fields1108, and adding a new question.

Referring to FIGS. 12 and 13, the computerized system 100 may beimplemented in many different ways. For example, the computerized system100 may be implemented in a central server architecture 1200 that iscentered on a conventional network host computer 1202, as shown in FIG.12. Alternatively, and preferably, the computerized system 100 can beimplemented in distributed network architecture 1300, as shown in FIG.13.

Referring to FIG. 12, the network host computer 1202 includes at leastone controller, processor, or central processing unit (CPU) 1204, atleast one communication port 1206, and one or more data storagestructures 1208. The processor 1204 may include one or more conventionalmicroprocessors and one or more supplementary co-processors such as mathco-processors. The communication port 1206 may include multiplecommunication channels for simultaneous communication with, for example,other processors, servers or client terminals, or a display unit.Devices in communication with each other need not be continuallytransmitting to each other. On the contrary, such devices need onlytransmit to each other as necessary, may actually refrain fromexchanging data most of the time, and may require several steps to beperformed to establish a communication link between the devices.

For example, the communication port 1206 may include wire modems,wireless radio, infrared, visible laser, or UV laser transceivers, oraudio transceivers. The communication port 1206 and the one or more datastorage structures 1208 are in communication with the processor 1204 tofacilitate the operation of the network host computer 1202. The datastorage structures may comprise an appropriate combination of magnetic,optical and/or semiconductor or flash memory, and may include, forexample, RAM, ROM, an optical disc such as a compact disc and/or a harddisk or drive. The processor and the data storage structures each maybe, for example, located entirely within a single computer or othercomputing device; or connected to each other by a communication medium,such as a USB port, serial port cable, a coaxial cable, an Ethernet typecable, a telephone line, a radio frequency transceiver or other similarwireless or wireline medium.

At least one of the data storage structures 1208 is encoded with (i) aprogram and/or algorithm(s) (e.g., computer program code and/or acomputer program product) 1210 adapted to configure one or more of theprocessors 1204 to emulate the various modules of the computerizedsystem 100, as described in detail hereinabove; and/or (ii) at least onedatabase configured to store information required, manipulated, orproduced by the computerized system 100 in execution of the program,such as, for example, database 112.

The computer program 1210 for configuring the processor 1204 toimplement the computerized system 100 (and other functions describedherein) can be developed by a person of ordinary skill in the art, andis not described in detail herein. Suitable computer program code mayalso be provided for performing numerous other functions such asgenerating notifications at selected time intervals. For example, inaddition to instructions for configuring the processor to implement thecomputerized system 100, the program 1210 also may include programelements such as an operating system, a database management system and“device drivers” that allow the processor to interface with computerperipheral devices (e.g., a video display, a keyboard, a computermouse). The processor 1204 may read the instructions of the program 1210from the data storage structures 1208. The program 1210 may be stored,for example, in a compressed, an uncompiled and/or an encrypted format,and may include computer program code. While execution of sequences ofinstructions in the program 1210 will configure the processor 1204 toemulate one or more of the modules of the computerized system 100,hard-wired circuitry may be used in place of, or in combination with,software instructions for implementation of the computerized system 100.Thus, embodiments of the present invention are not limited to anyspecific combination of hardware and software.

Each user device or computer or client terminal may include any one or acombination of a keyboard, a computer display, a touch screen, LCD,voice recognition software, an optical or magnetic read head, or otherinput/output devices required to implement the above functionality. Eachdisplay unit may include any one or a combination of a computer display,a printer, a CD/DVD burner, a magnetic tape drive, a magnetic diskdrive, an LCD array, a voice speaker, a network connection, or similaroutput device. At least one of the user devices or computers or clientterminals, or of the display units, may be configured according to thecomputer program, or according to other instructions, to provide varioususer interfaces for receiving data and for displaying messages includingdisplay of the GUI 118.

Referring to FIG. 13, wherein, similar numbers indicate componentssimilar to those shown in FIG. 12, the distributed network architectureincludes several module servers 1302 a-n and at least one data server1303 connected by a communications hub 1305. Each of the module servers1302 a-n includes at least one associated processor 1304, at least onecommunication port 1306, and one or more data storage structures 1308.The data server 1303 is configured to maintain the database 112 inresponse to instructions and queries received from the various moduleservers 1302 a-n, according to the program 1210. The communications hub1305 serves as a primary communication link between the module servers1302, the data server 1303, and other servers, client or user terminalsand related devices including one or more display units. Thecommunications hub 1305 may have minimal processing capability itself,serving primarily as a communications router, or may also act as anothermodule server. A variety of communications protocols may be part of thesystem, including but not limited to: Ethernet, SAP, SAS.™, ATP,Bluetooth, and TCP/IP.

In the distributed network architecture, as shown in FIG. 13, each ofthe module servers 1302 is configured by execution of the program 1210to emulate one or more of the various modules and processes of thecomputerized system 100. For example, the data server 1303 may beconfigured by the program to emulate interface module 104, as well asdatabase module 102, while module server 1302 a may be configured by theprogram to emulate vendor module 200, uploading module 400, viewingmodule 500, and reporting module 900.

In the central server architecture shown in FIG. 12 or in thedistributed network architecture shown in FIG. 13, the program 1210 maybe embodied in a computer-readable medium, other than any of the datastorage structures, that provides or participates in providinginstructions to the processor (or any other processor of a computingdevice described herein) for execution. The computer-readable medium maytake many forms, including but not limited to, non-volatile media,volatile media, and transmission media. Non-volatile media include, forexample, optical or magnetic disks, such as memory. Volatile mediainclude dynamic random access memory (DRAM), which typically constitutesthe main memory. Transmission media include coaxial cables, copper wireand fiber optics, including the wires that comprise a system bus coupledto the processor. Transmission media may carry acoustic or light waves,such as those generated during radio frequency (RF) and infrared (IR)data communications.

Common forms of the computer-readable medium can include, for example, afloppy disk, a flexible disk, hard disk, magnetic tape, any othermagnetic medium, a CD-ROM, DVD, any other optical medium, punch cards,paper tape, any other physical medium with patterns of holes, a RAM, aPROM, an EPROM or EEPROM (electronically erasable programmable read-onlymemory), a FLASH-EEPROM, any other memory chip or cartridge, or anyother medium from which a computer can read. Various forms of thecomputer-readable medium may be involved in configuring the processor(or any other processor of a device described herein) to implement themodules and processes of the computerized system 100. For example, asshown in FIG. 13, the program 1210 may initially be borne on a magneticdisk of a remote computer. The remote computer can load the instructionsinto its dynamic memory and send the instructions over a telephone lineusing a first modem. A second modem local to the communications hub canreceive the data on the telephone line and can use an infraredtransmitter to convert the data to a wireless signal. An infrareddetector of the communications hub can receive the data carried in thewireless signal and can transfer the data through the communications hubto one of the module servers or to the data server. In addition,instructions may be received as electrical, electromagnetic, or opticalsignals, conveyed either on optical or electromagnetic cables or aswireless carrier waves that carry data streams representing varioustypes of information.

In use, a vendor logs into the vendor interface 202 and uploadsreferrals via the uploading module 400. The uploading module 400 checksformat and substance of the referrals information, to include dateparameters, character vs. numeric formats, standard column widths, andmandatory filled cells. The uploading module 400 displays the uploadedreferrals to the vendor via the viewing module 500. The vendor can exitthe viewing process by clicking a button to submit the uploadedreferrals to the vendor manager for audit. On receipt of an e-mail orannouncement generated by the submit button, the vendor manager cangenerate a random sample of the referrals via the sampling module 600.Up until the vendor manager generates a random sample of the referralsvia the sampling module 600, the vendor still may modify any of theuploaded referrals via the viewing module 500. Typically, the vendormanager runs the sampling module 600 on a quarterly basis. Optionally,the vendor manager can re-run a query or modify sampling to support abusiness need.

Once the vendor manager clicks a button or link to approve the randomsample, an email notification is delivered to the vendor indicating thatthe sample is available for audit. From this point forward, the vendorcan no longer modify previously uploaded referrals.

Based on the random sample of referrals, the vendor answers standardquestions for each referral. The standard questions correspond to thetype of service that the vendor provides. The vendor can save answers tothe questions to the database with a date and time stamp. Once allquestions have been answered the vendor can submit the entire audit forscoring and approval.

The computerized system 100 generates a scorecard based on the vendor'sanswers to the audit questions, and a scorecard review is held betweenthe vendor and the vendor manager. Based on the formal review, thescorecard results may be modified based on agreed changes to the auditanswers, the audit questions, or the scoring system.

One advantage of the present invention is that automated e-mailnotifications or announcements generated by the computerized system 100improve timeliness of process and results both by vendors and by vendormanagers. Thus, the present invention allows for greater accuracy andefficiency in referrals handling and claims auditing. Additionally, byenhancing the ease of vendor audits, the present invention improvesconsumer safety. By enhancing the speed of vendor and referralsinformation collection, the present invention provides timely trends andforecasts for vendor performance. Additionally, the centralized database112 enables meta-analysis of referrals and outcomes to assesscorrelation of outcomes to vendor practices. By expeditingvendor-to-vendor manager communications, the computerized system 100enhances process feedback loops and consistency of vendor compliancewith vendor manager guidelines. Additionally, the automated nature ofvendor self-audits using the computerized system 100 enhancesmonitoring, training requirements, and communications. Moreover,speeding up the auditing module 700 reduces case cost endpoints.

For vendors, the computerized system 100 provides quick self-assessmentand feedback regarding the vendors' compliance with treatmentguidelines, treatment network restrictions, outcome guidelines, andutilization duration guidelines (Return to Work or RTW criteria).

Although this invention has been shown and described with respect to thedetailed embodiments thereof, it will be understood by those skilled inthe art that various changes in form and detail thereof may be madewithout departing from the spirit and the scope of the invention.

1. A system for enabling an insurance company to audit third-partyvendors who provide services to an insured in connection with aninsurance claim, comprising: at least one data storage device; and atleast one computer processor configured to implement: an interfacemodule for receiving user login data and displaying an interfacecorresponding to the login data, via a client machine; a database modulefor storing and retrieving a plurality of insurance claim files andaudit questions in a database implemented in the data storage device; anuploading module for receiving vendor referrals from third-party vendorsvia the interface, wherein each of the vendor referrals is stored in thedatabase and associated with one of the insurance claim files, and eachof the vendor referrals identifies a service provided by a third-partyvendor to an insured; a sampling module for selecting one or more vendorreferrals stored in the database that are associated with a selectedthird-party vendor and selecting questions stored in the database basedon the services identified in the selected one or more vendor referrals;an auditing module for presenting the selected questions to the selectedthird-party vendor associated with the selected one or more vendorreferrals and receiving answers to the questions from the selectedthird-party vendor via the interface; and a reporting module forpreparing a scorecard based on the selected third-party vendor's answersto the selected questions, which indicates how the selected third-partyvendor has performed relative to a set of predetermined standards, andpresenting the scorecard to the selected third-party vendor via theinterface.
 2. The system as claimed in claim 1, wherein the interfacemodule displays one of a plurality of interfaces corresponding to one ofa plurality of roles corresponding to the login data, the plurality ofroles including at least a vendor role and a vendor manager role.
 3. Thesystem as claimed in claim 1, wherein the interface module includes avendor module for displaying a vendor interface corresponding to vendoruser login data and a managerial module for displaying a managerialinterface corresponding to vendor manager user login data.
 4. The systemas claimed in claim 1, wherein the interface module is implemented in afirst computer processor and the database module is implemented in asecond computer processor, the first and second processors being incommunication with each other and the second processor being incommunication with the data storage device.
 5. The system as claimed inclaim 1, wherein the uploading module is implemented through a vendorinterface displayed by the interface module.
 6. The system as claimed inclaim 1, wherein the uploading module validates uploaded vendorreferrals for sufficient information, and displays via the correspondinginterface, at least those vendor referrals that fail validation.
 7. Thesystem as claimed in claim 1, wherein the sampling module selects noless than five vendor referrals up to ten percent (10%) of the vendorreferrals uploaded by the selected third-party vendor, but not more thantwenty five referrals total.
 8. The system as claimed in claim 1,wherein the sampling module is activated via a managerial interfacedisplayed by the interface module.
 9. The system as claimed in claim 1,wherein the auditing module is activated via a vendor interfacedisplayed by the interface module.
 10. The system as claimed in claim 1,wherein the auditing module provides for each question a menu forselecting an answer.
 11. The system as claimed in claim 1, wherein thereporting module can be activated via a managerial interface and avendor interface displayed by the interface module.
 12. The system asclaimed in claim 1, wherein the insurance claim files relate to workercompensation claims, and the vendor referrals include informationrelated to services associated with medically treating the claimant. 13.The system as claimed in claim 1, wherein the reporting module providescontrols for editing the scorecard when activated via a managerialinterface displayed by the interface module.
 14. The system as claimedin claim 13, wherein the reporting module does not provide controls forediting the scorecard when activated via a vendor interface displayed bythe interface module.
 15. The system as claimed in claim 1, the databasemodule also for storing and retrieving a plurality of vendor statusrecords in the database, the reporting module also for generating aworkflow schedule within a corresponding vendor status record based onthe scorecard.
 16. The system as claimed in claim 1, the computerprocessor further configured to implement an audit revision module forretrieving, editing, and storing the audit questions in the database,via the interface.
 17. A system for enabling an insurance company toaudit third-party vendors who provide services to an insured inconnection with an insurance claim, comprising: one or more data storagedevices, in which one or more databases are implemented, the databasesstoring at least vendor referrals, insurance service vendor statusrecords, and user credentials; a data server with a processor configuredto communicate with at least one of the one or more data storagedevices; one or more client machines with corresponding processors, eachof the processors configured to provide at least one of: an interfacemodule for receiving user login data, comparing the login data to theuser credentials stored in one of the one or more databases, anddisplaying an interface according to the comparison of the login data tothe user credentials, via one of the client machines; an uploadingmodule for receiving vendor referrals from third-party vendors via theinterface and transmitting each of the vendor referrals to the dataserver for entry into the database in association with an insuranceclaim file, wherein each of the vendor referrals identifies a serviceprovided by a third-party vendor to an insured; a sampling module forselecting one or more vendor referrals stored in the one or moredatabases, which are associated with a selected third-party vendor, andselecting questions stored in the one or more databases with based onthe services identified in the selected one or more vendor referrals; anauditing module for presenting at least the selected questions to theselected third-party vendor and receiving answers to the questions fromthe selected third-party vendor via the interface; and a reportingmodule for preparing a scorecard based on the selected third-partyvendor's answers to the selected questions, which indicates how theselected third-party vendor has performed relative to a set ofpredetermined standards, and presenting the scorecard to the selectedthird-party vendor via the interface.
 18. The system as claimed in claim17, wherein at least one of the processors implements a routing modulefor generating a workflow in one of the databases, based on thescorecard prepared by the routing module.
 19. The system as claimed inclaim 18, wherein the routing module generates a workflow for sendingreferrals administration process reminders to a vendor employee.
 20. Thesystem as claimed in claim 19, wherein the reporting module includesassessing previous scorecards to determine one or more vendorperformance trends.
 21. The system as claimed in claim 20, wherein thereporting module generates a recurring deficiencies checklist based onthe vendor performance trends.
 22. The system as claimed in claim 17,wherein said sampling module increases the probability of at least onereferral to be selected responsive to the data in the referral.